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HMRC internal manual

Employment Income Manual

Other expenses: telephone charges: example

An employee needs to be on call to deal with emergencies. For that reason in 2003/04 his employer reimburses the line rental and all call charges for his home telephone. The employee remains the subscriber.

The payments by the employer may be earnings, see EIM07800. The employee can deduct from those earnings the amount that is necessarily, wholly and exclusively incurred in performing the duties of the employment.

In one quarter the telephone bill is £72. This is made up of line rental of £24, business call charges of £12 and private call charges of £36. A deduction is due for £12, the cost of business calls.